- This topic has 3 replies, 2 voices, and was last updated 3 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 2 Inventories
I understand that NRV may not reflect actual market price. But is it right that if the inventory is reflected at market price, then it is said to be measured at fair value?
Because if the inventory is measured at market price, this means that it is an orderly transaction between market participants?
Thank you for clarifying me on the above,
Inventory is within the scope of IFRS 13
So the valuation is a best estimate of market price (i.e fair value) less cost of completion and disposal
Exam question – I would still use the abbreviation NRV
Thank you for your reply.
So you mean that NRV will generally be same as fair value?
RV is the same as fair value
But to get to NRV you need to deduct costs complete and cost to sell